Many people use these words interchangeably – and so do most dictionaries.
There is a big difference between these two words. Inventions cost money – Innovations make money. Inventions are more commonly the output of the intelligence of one person or a small group of people.
Innovations are the result of a much larger group of people getting their arms around the intelligence of an invention, and making something happen.
Inventions don’t generally have a significant impact on the competitive business environment.
Innovations cause a competitor to change, and innovations sometimes change the “rules of the game”.
Every business is in the business of selling intelligence, whether it packaged in the form of a “fast food burger” or the guidance control system for an aircraft. Developing the core intelligence through “invention” is a necessary and essential task. But doing something about it, innovating by introducing something new that takes hold in the market is a critical task.
Both invention and innovation connote radical. But in business, small incremental innovation always keeps raising the bar, and staying a step a head of the competition. Using a baseball analogy, homeruns are fun and exciting to watch, but more often than not a consistent series of base hits win games.
Innovation ideas don’t necessarily come from R&D or the lab. They are typically not found under a microscope. They are mostly commonly found in everyday conversations and discussions.
You just have to learn to listen with the desire to change. If you do, you’ll find innovative ideas all around you.
